The invention is in the field of verifying the authority of the user of a credit account.
In the modern highly commercialized and highly technological world, countless everyday business transactions are consummated with the aid of credit accounts such as checking and charge accounts. Use of an account is evidenced by the user executing a certificate in the form of a promise to pay a specified amount. The unauthorized use of such certificates has become a major problem in the business world. To protect against such unauthorized use various method have been devised to verify the authority of the user of a credit account.
Where checks are involved, the authenticity of the maker's signature can be verified by comparing the signature on the check against the authorized signature. However, due to the extremely large volume of checks presented for payment each day, a check by check signature comparison is impossible.
In the case of credit cards, an attempt is often made to verify the identify of the credit card user by requiring him to submit additional proof of his identity. For example, a person is often required to present his driver's license, social security card or other form of identification, before a store will accept his credit card. However, the unauthorized use of credit cards often results from the loss or theft of an authorized user's wallet or handbag so that the additional forms of identification also fall into the hands of the thief. Thus, these methods of authority verification fall far short of solving the problem.
Therefore, a system must be developed which can verify a user's authority without relying on his personal signature or his identification papers. Further, the system should operate such that the credit card user or the maker of a check need not operate any devices. This requirement is particularly important in veryifying the authority of a maker of a check, since the verification procedure occurs when the payee or his endorser presents the check for payment at a bank. In addition, by not requiring the user to operate any devices, less chance of error in the verification process occurs.